Chinatown Economy
From Decoding New York
Chinatown's economy relies heavily on tourism, as well as Chinese goods and services. Although tourism was hurt by September 11, the industry has recovered in recent years. For many tourists, Chinatown is the first stop in lower Manhattan, either to witness cultural events like the Lunar New Year Parade or to buy knockoff designer items. The textile and garment industry in Chinatown, while at one point a large part of the economy, has declined in recent years. Cheap textiles from China destroyed the textile industry in New York - imitation goods manufactured in China cost far less than manufacture in New York. The number of factories in Chinatown fell from 400 in 2000 to 150 in 2006. There is still trade in inexpensive garments for tourists. There is also an underground economy of illegal goods, fake designer products, mahjong games, poker, and drugs that contributes to the growth of Chinatown. In addition, Chinatown's restaurant and labor businesses rely on low wages paid in cash. Perhaps due to illegal workers, or reluctance to pay taxes, many transactions are undocumented which allows for Chinatown to run on less money than the rest of expensive New York City.
